Free Canada disability insurance coverage calculator. EI sickness benefits cover 55% of insurable earnings up to $668/week. Shows your monthly coverage gap.
Calculate your monthly disability income gap after EI sickness benefits.
Monthly coverage gap (insurance needed)
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EI sickness benefit (monthly, before tax)
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EI sickness benefit (after tax estimate)
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Total income available on disability
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Your breakdown
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Why most working Canadians are underinsured against disability
Statistics Canada data consistently shows that disability, not death, is the leading cause of financial hardship for working-age Canadians. One in three Canadians will experience a period of disability lasting 90 days or more before age 65. Yet most working Canadians rely on a combination of EI sickness benefits and a basic employer group plan that together replace at most 60 to 65 percent of their pre-disability income, and only for a limited period. EI sickness benefits last just 26 weeks. Many employer group long-term disability plans have a 60 to 90 day elimination period and a definition of disability that narrows significantly after two years. If you have dependents, a mortgage, or significant fixed expenses, a disability that lasts 12 to 24 months can devastate your financial position.
How EI sickness benefits are calculated in 2025
EI sickness benefits pay 55 percent of your average insurable weekly earnings. The maximum insurable earnings amount in 2025 is $65,700 annually, which caps the weekly insurable earnings at $1,263. Applying the 55 percent rate gives the maximum weekly benefit of approximately $668, or about $2,895 per month before tax. EI sickness benefits are taxable income, so at a 33 percent marginal rate the after-tax monthly amount is closer to $1,940. If your monthly expenses are $4,500, you have a gap of $2,560 per month that must be covered by savings, employer group disability coverage, or private disability insurance during the first 26 weeks. After that, EI ends entirely.
Self-employed Canadians and the EI gap
Self-employed Canadians are generally not eligible for EI sickness benefits unless they have voluntarily opted into the EI special benefits program. Without that coverage, a self-employed person who becomes disabled has no government income support at all during the period they cannot work. Private disability insurance is not optional for self-employed individuals who depend on their earned income. Look for an own-occupation definition of disability in a policy, which pays if you cannot perform the specific duties of your occupation rather than just any work. Policies with longer benefit periods to age 65 cost more in premiums but provide the most complete protection against a long-term disability event.
Frequently asked questions
How much do EI sickness benefits pay in Canada in 2025?
Employment Insurance sickness benefits pay 55 percent of your average insurable weekly earnings up to the maximum insurable amount of $65,700 in 2025. The resulting maximum weekly benefit is approximately $668, or about $2,895 per month before income tax. EI sickness benefits are available for up to 26 weeks (about 6 months). They are taxable income, so your net monthly EI benefit will be somewhat lower depending on your tax rate. Apply immediately when you become unable to work, as there is a 1-week waiting period.
What is the difference between EI sickness benefits and disability insurance?
EI sickness benefits are a government program available to most employed Canadians for up to 26 weeks of illness. Private disability insurance is a product you buy separately, which typically covers 60 to 80 percent of your pre-disability income for a longer benefit period of 2 years, 5 years, or to age 65. Long-term disability coverage through an employer group plan often starts after 90 to 120 days of disability, which means EI sickness benefits can bridge the gap during the waiting period. Self-employed Canadians are generally not eligible for EI sickness benefits and must rely entirely on private coverage.
What disability insurance coverage amount should I target?
Most disability insurance policies will cover 60 to 70 percent of your pre-disability gross income, which is less than you might expect but is designed so that disability benefits are non-taxable (if you pay premiums with after-tax dollars), making the net replacement ratio comparable to your working income. Target enough coverage that your disability income plus EI sickness benefits during the elimination period covers at least your essential monthly expenses. The gap this calculator shows is a reasonable minimum target for private disability insurance coverage.
Are disability insurance premiums tax deductible in Canada?
If you pay disability insurance premiums personally with after-tax dollars, the premiums are not tax-deductible, but benefit payments you receive are tax-free. If your employer pays the premiums as a taxable benefit, the premiums may flow through your T4 and the benefits become taxable. Choosing to have premiums treated as a taxable benefit versus a non-taxable benefit has opposite tax consequences at claim time. Most financial advisors recommend the non-deductible premium structure for individual policies so that benefits are received tax-free, which simplifies budgeting during a period when you are already under financial stress.